Building a Biotechnology Company

1
Building a Biotechnology Company

• Wayne T. Hockmeyer, PhD
• Greater Baltimore Committee
• September 27, 2006

2
What Is Biotechnology?

• Roots in the distant past
• Term coined in 1919 by Karl Ereky all lines of
  work by which products are produced from raw
  materials with the aid of living organisms
• Today Biotech term incorporating techniques
  for using properties of living things to make
  products or provide services

3
History of Modern Biotechnology

• 1953 - Watson and Crick publish DNAs structure
• 1980 - U.S. patent for cloning genes awarded to
  Cohen and Boyer
• First biotech companies formed
• 1976 - Genentech 1981 - Immunex
• 1978 - Biogen 1981 - Chiron
• 1980 - Amgen 1981 - Genzyme
• 1982 - First biotech product launched in U.S.
• Humulin - recombinant human insulin
  (Lilly/Genentech)

Nature 171, 737(April 2, 1953)
4
The Biotech Pioneers

• Genentech - venture capitalist Robert Swanson and
  biochemist Herbert Boyer, Ph.D.
• Biogen - group of world-renowned scientists,
  i.e., future Nobel Laureates Phillip Sharp, Ph.D.
  from MIT and Walter Gilbert, Ph.D. from Harvard
• Amgen - group of scientists/venture capitalists
  first CEO former Abbott exec, George Rathmann,
  Ph.D.
• Immunex - businessman Stephen Duzan academic
  researchers Steven Gillis, Ph.D. and Christopher
  Henney, Ph.D., who keep fulltime jobs at Fred
  Hutchinson Cancer Ctr while starting Immunex
• Chiron - 3 profs who left biochem deptmts of Bay
  Area's leading universities William Rutter,
  Ph.D., Edward Penhoet, Ph.D., Pablo Valenzuela,
  Ph.D.

5
Contributions of Biotech

• 300 biotech drugs and vaccines currently in
  clinical trials targeting 200 diseases (i.e.,
  cancers, Alzheimers disease, heart disease,
  diabetes, multiple sclerosis, AIDS and arthritis)
  
• gt240 approved biotech drugs and vaccines have
  helped hundreds of millions of people worldwide
• Nearly 40 new products and new indications
  approved in 2005
• Responsible for 100s of medical diagnostics
  (e.g., HIV tests, home pregnancy tests, HPV
  tests)
• DNA fingerprinting biotech process that
  dramatically improved criminal investigation/
  forensic medicine
• and dont forget agricultural biotechnology

6
Select Biotech Products gt500M

• Product Indication Company
• Avonex Treat MS Biogen-Idec
• ENBREL Treat RA Amgen/AHP
• EPOGEN/Aranesp Treat Anemia Amgen
• Herceptin Treat breast cancer DNA/Roche
• HibTiter Haemophilus b Lederle/Praxis
• Humira Treat RA Abbott
• NEUPOGEN/Neulasta Decrease cancer
  treatmt. Amgen
• side effects
• Protropin Hypopituitary dwarfism Genentech
• Recombivax HB Hepatitis B vaccine Merck/Chiron
• Remicade Crohns/RA Centocor
• Rituxan Non-Hodgkins lymphoma Biogen-Idec/DNA
• Synagis Prevent RSV MedImmune
• Viracept Treat HIV Agouron

7
MedImmune

• Profitable biotech 18 years old
• 1.2B revenues 412M RD 2.3B cash (LTM)
• 2,400 employees HQ in Gaithersburg, Md.
• Four marketed products 40 candidates in RD
• Infectious disease, cancer and inflammatory
  disease
• Innovative, proprietary products, unmet medical
  needs
• Leader in pediatrics, respiratory infectious
  disease, antibodies and vaccines

Excludes impact of share-based compensation
expense. Cash balance excludes July 17, 2006
redemption of 492M of 1 convertible notes.
8
Financing History308M to Build the Business
14M from venture funds
204M from IPO/secondaries/PIPEs
30M from partnership placements
60M from convertible bonds
9
Marketed Products
2005 Revenues
Indication
Product
Compound
Prevent RSV in high-risk infants
Palivizumab
1.1B
Chemo-/radio- protectant
Amifostine
95M
Prevent CMV in solid organ transplant patients
Cytomegalovirus immune globulin
41M
Live attenuated influenza vaccine
21M
Prevent influenza
10
Revenue Growth(in millions)
36 10-year CAGR
13 3-year CAGR
11
MedImmunes RD Portfolio
Phase 1
Phase 2
Phase 3
Registration
Preclinic
Infectious Disease Cancer Inflammatory Disease
First HPV vaccine (MRKs) approved in June 2006
GSKs HPV vaccine submission expected around
YE2006 MEDI to receive royalties on both
12
5-Year RD Growth(in millions)


Excludes charges for terminating Wyeth influenza
vaccine franchise agreements
13
MedImmune Staffing2,400 Employees
Administrative 15
Research Development 25
Sales and Marketing 25
Clinical/Regulatory 15
Manufacturing/QA/QC 20
Note proportions based on 2006 headcount
projections.
14
MedImmune

• Strong track record with established commercial
  and product development capabilities
• Clear plan to drive financial growth 2005-2010
• Building long-term value through RD investment

15
Building a Biotechnology Company

• Wayne T. Hockmeyer, PhD
• Greater Baltimore Committee
• September 27, 2006